gef management corp. 5471 wisconsin ave., suite 300 chevy chase, md 20815 africa sustainable...

GEF Management Corp.5471 Wisconsin Ave., Suite 300Chevy Chase, MD 20815www.globalenvironmentfund.com

Africa Sustainable Forestry Fund IIKevin Tidwell

February 2014

Proprietary and Confidential

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Demand-Supply of Wood in Africa (million m3)How will supply cover demand growth of 2.6%

p.a.?

Natural Forests, Sustainable Natural Forest, UnsustainableSupply Gap (+14% p.a.) Industrial Plantations (+3% p.a.)

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Africa’s stagnant forestry supply is being eclipsed by steady demand growth

This growing supply gap leads to increases in prices, imports and deforestation

Divergent Demand/Supply Dynamics

Demand: Strong industrial wood demand (~7% p.a.) in addition to steady fuelwood demand (2% p.a.)

Supply: Natural forest stock fixed and only small growth from plantations (~1% per year) due to lack of investment

Source: Food and Agricultural Organization, Indufor, and GEF Estimates

Proprietary and Confidential

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GEF has a long-term, sustainable comparative advantage in African timber• GEF has a successful history in African forestry investments since 2001

• Our team and network are the strongest and most experienced on the continent with backgrounds in finance, forestry, milling and biomass energy.

• GEF benefits from very limited competition and deep proprietary information; currently allowing us to buy quality assets at less than half of replacement cost

• Proven ability to de-risk assets through silviculture, fire management, planning and manufacturing partnerships.

• Strong base of people, skills and assets to build on. With 100,000 planted hectares, we are already the largest owner of non-pulp forestry assets in Africa.

Vision: Combine ASFF I and II and target 250,000 planted hectares of plantations that best capitalize on a growing supply/demand imbalance. This “Pan-African Forestry Company” will be well-diversified with mitigated risks to offer a wide

range of exit opportunities for ASFF investors.